Rochester, NY

15 Replies

Hi all,

I'm an RIT grad, now living in greater NYC, and have a new real estate partner local to the Rochester area. I'll be flying up to Rochester in a couple of weeks, with the goal of looking at target neighborhoods for multi-families with strong cashflow. I'd love to connect with fellow investors or brokers in the area while I'm up. Hit me up if you'd like to meet!

Cheers,

Chris

@Chris Welch  Welcome.  You'll definitely want to connect with @Mark Updegraff  .  He works with lots of investors and knows the city really well.

@Chris Welch  how did your trip go?  

Rochester is on our radar.  It would be great to connect with people that know the city well.

@Mark Updegraff and @Larry T. I would like to connect with you if you don't mind.  We will be planning a trip in the coming weeks.  We have properties in Syracuse and are considering expanding to Rochester.

Thanks

Medium sharpline equity whiteChris Jackson, Sharpline Equity | 631‑629‑5557 | http://www.sharplineequity.com

I am also interested in investing in Rochester.  How well do the properties cash flow up there?

Most of the housing stock in the city is older and under perpetual need of repair. I put almost all proceeds back into improvements and enhancing equity, salability and rentability.

I have found that I am no longer able to rent dodgy apartments.

@Matt Handy By choice or government enforcement?

@Christian, generally speaking (for myself) the CAP rates are around 10% unless you get into college rentals and then you could have an ROI as high as 35% easily. Good Luck!

Hey guys, new to Rochester scene as well and wanted to say hey and meet some of the players. Would love to connect and help wherever I can.

Basically reinvesting large ecommerce profits and planning to go hard in Rochester buy and hold. 

Why the hell are deals so good with Cap Rates etc? @Matt Handy  what percentage of rents are you putting back into repairs and maintenance? I was seeing 15-20% on quite a few properties I been looking into, duplexes and quads.

@Matt Ward  it really depends on where you buy and the deal you get. The houses with higher cap rates are usually going to require more work in my experience because you get them cheaper. However if you spend more you will in turn get higher rents/ higher quality tenants. Buying a house already fixed up usually is much higher priced so we tend to buy low and put in the equity ourselves. But buying a house in park Ave for example will have a super low cap rate, sometimes they don't even cash flow at all at the prices I've seen. 

You also need to factor in local taxes as they are much higher than elsewhere. The MLS listings usually give you a general idea of what those are currently but then assume more if the asking price is much higher than their current appraisal value. The city is slow at everything but collecting money! Lol

All the investors I know here have a slightly different model and area they invest in. What is your typical model? What kinds of houses/tenants are you now comfortable working with? 

@MJ Calabrese most of my rerepairs are by choice. If you want to call putting on roofs a choice or not. I have put in kitchens recently, choice? Have a vacancy or spend money. I guess choice is involved, I got to pick the cabinets

i did have to spend 2k to repainted windows as mandated to get a c of o inspection. 

@Shannon Sadik thanks a bunch.

For the higher cap, lower price properties, what percentageish would you recommend to dedicate to this? I know it depends but just rough estimate, 5% rent? More?

I budget 5% if I did a huge renovation and most things are new. Otherwise 10% and that's on properties in A to B- properties. 10% is pretty typical to save just for long term capital expenses. If it's in a bad neighborhood with tenants that may do more damage with a lot of turnover I might do 15%. But you can avoid that with good screening and good property management and security deposits.